Table 7-12
The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality.
-Refer to Table 7-12. You wish to purchase 10 piano lessons, so you take bids from each of the sellers. You will not accept a bid below a seller's cost because you are concerned that the seller will not provide all 10 lessons. What bid will you accept?
A)$351
B)$251
C)$249
D)$199

Question

Table 7-12
The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality. 
-Refer to Table 7-12. You wish to purchase 10 piano lessons, so you take bids from each of the sellers. You will not accept a bid below a seller's cost because you are concerned that the seller will not provide all 10 lessons. What bid will you accept?
A)$351 
B)$251 
C)$249 
D)$199

Quizplus · Accepted Answer

We want to find the bid that is above the seller's cost for providing 10 lessons. From the table, we see that the cost for Provider A is $240 and for Provider B it is $250. Therefore, Provider A's bid of $249 is above their cost and the lowest bid that meets our criteria, so we will accept it.

Table 7-12 The Numbers Reveal the Opportunity Costs of Providing 10 Piano